• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Economist article, Making The Desert Bloom, brings to light the condition that Mexico's economy is currently in, restricted by cartels, monopolies and its unfortunate situation with America.

Extracts from this document...

Introduction

Connor Reilly Economics - Mrs. Sickle 14 October 2011 Current Events Desert Economy Struggling To Stay Afloat When America's economy fell into a recession in 2008, it took down mexico along with it. America is by far the largest buyer of Mexican products, last year alone doing $400 billion in business. The Economist article, "Making The Desert Bloom," brings to light the condition that Mexico's economy is currently in, restricted by cartels, monopolies and its unfortunate situation with America. When stocks plummeted and jobs were lost in america, Mexico's economy as a whole fell by 6.1%, the northern state of Coahuila getting hit the worst with a drop of 12.3%. ...read more.

Middle

At the beginning of the decade, Mexico claimed the largest Latin American economy but since has been over taken by brazil with a GDP grow to more then 2 times that of Mexico's. In 2010, the murder rate was 17 out of every 100,000 people, expected to cause a 1% drop in Mexico's annual growth rate. Foreign direct investment has fall from $30 billion to just half that over the last 5 years. With so many problems limiting Mexico's potential, the country needs to get everything in order to to revive itself from the current recession. ...read more.

Conclusion

Sales to latin America and asia are growing twice as fast as those to America. Mexico's largest export is the automotive industry, although its exports to America make up only 65%. Eduardo soils head of the industry's national association thinks this is a good sign because it always Mexico to establish markets in other countries, opening up more opportunities. His goal is to get it down to 50%. Others argue that Mexico can not become a "commodity exporter." just because countries like china have a demand for soy beans, doesn't mean that Mexico should start growing and export this product. They believe the economic future still lies in America's economy. They way out of the recession is to gain a bigger piece of America's slowly growing economy. Reilly Reilly ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level UK, European & Global Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level UK, European & Global Economics essays

  1. Why has GDP growth been so slow in Somalia?

    it could also be much higher than currently estimated because of this market. GDP is, after all, the value of all the goods and services - if a country is producing more than is being calculated, growth can only be increasing.

  2. Comprehensive Anatomy of China

    There are 8 other parties in addition to the CCP that function in China: the China Revolutionary Committee of the Kuomintang, the China Democratic League, the China Democratic National Construction Association, the China Association for the Promotion of Democracy, the Chinese Peasant's and Worker's Democratic Party, the China Zhi Gong Dang, the Jiusan Society, and Taiwan Democratic Self-government League.

  1. Is Mexico better off with NAFTA

    In addition, imprudent fiscal policies and excessive reliance on external borrowing contributed to financial fragilities"3. This left Mexico with macroeconomic imbalances. The credit dried up and the government shifted towards more hazardous financial instruments. "When the crisis hit hard at end-1994, the impact was amplified by the balance-sheet effects of

  2. Telecommunications in Latin America "The dawn of a new economy"

    in 1995, Brazil belatedly and with vigor opened its incumbent carrier to private investment more recently and Colombia is now in the process of doing the same with its local as well as long distance carriers. The histories are different, but similar.

  1. Explain the evolution and characteristics of the debt problems of LDCs. In the light ...

    Levels of debt differ greatly in terms of the relative incomes of LDCs. The pattern that the least developed countries owe the least is starkly evident in Table 2 (see Appendix), and yet these countries simultaneously find the most difficulty making repayments, because they have a very low GDP and few ways to raise domestic revenue or foreign currency.

  2. Globalisation - What Implications for Democratic Decision Making.

    Dependency theorists argue that globalisation strengthens strong states at the expense of small peripheral players in the global economy.(20) Apart from their stated internal goals, regional grouping may be one way for countries - particularly small economies - to maximise their influence in global fora.

  1. Emergency Economic Recovery Program From the United Nations International Report, Vol. I, no. A1

    environmental considerations across all sectors of the economy and in development activities, involving public participation through the establishment of a National Advisory Council on the Environment, and providing a political framework for the sustainable development of Haiti. The new Haitian government has made a commitment to decentralize the decision-making process

  2. The Economy Of Estonia - Features,Current State and Exports

    In the World Bank report for 2012 (which studies the ease of doing business in a country), there was a miscalculation made this year. Namely, the study did not take into account Estonia´s transition from the kroon to the euro, as a result of which the cost for getting a

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work